Brazil extends tax break for auto industry until year end

SAO PAULO, June 30 (Reuters) - The Brazilian government will
extend a tax break for automakers, Finance Minister Guido
Mantega said on Monday, in a bid to help raise sales depressed
by a slowing economy in the world's No 4 car market.

The announcement marks a change in policy for the government
which until recently said it would let the tax break expire and
restore the tax on manufactured goods, or IPI, for car sales to
previous levels to safeguard its fiscal accounts.

"This measure will stimulate the sector so that jobs can be
kept even when sales are down," Mantega told reporters in Sao
Paulo.

The IPI tax for automobiles will remain at its current
reduced levels until the end of the year. The tax break was
suppose to end on July 1.

Brazil is a key base of operations for automakers that
include Italy's Fiat SpA, Germany's Volkswagen AG
and U.S.-based General Motors Co and Ford
Motor Co.
(Reporting by Aluisio Alves; Writing by Alonso Soto; Editing by
James Dalgleish)